AN ASSESSMENT OF FACTORS AFFECTING ADOPTION OF AGENT BNKING The case of Lion International Bank S.C. (Agent perspective)

Abstract

This research aims to describe factors that affect the adoption of agency banking in Ethiopian banking industry taking Lion International Bank SC as specific case. In order to achieve the objective of this study and answer the research questions the researcher adopted descriptive research design. This descriptive study was conducted based on the data gathered from the Agents of Lion International Bank SC. The researcher reviewed various empirical and theoretical literatures in light of having an in-depth understanding on the subject matter. To gather relevant data to the study a Likert type scaled questionnaires with close ended questions were distributed to geographically select115 agents from three sub-cities in Addis Ababa. The research was conducted through assessing five major factors that can be taken as challenges for the adoption of Agent banking in Ethiopia. These barriers categorized as Technological factor, Organizational factor, Environmental factor, Factors from agent perspective and the ultimate customer perspectives. The data collected based on the above factors were analyzed using descriptive statistics supported by SPSS software. The findings of the research revealed that major challenges facing up the successful implementation of Agent banking system in the selected bank were trustworthiness of the technology, simplicity, resource, commitment of top level management, training, government support, legal framework, belongingness of Agent and public awareness regarding agency banking system. After due consideration of those findings the researcher recommend on major issues like awareness and customer sensitization, continues training , security and liquidity management for the stakeholders,The bank, The Agent, Ethio-telecom and National Bank of Ethiopia in connection with their roles.